SWIFT Business Intelligence at SIBOS in Dubai - Wrap-up report
10
Business Intelligence at Sibos Dubai The sky is the limit: get more from the Watch portfolio! Business Intelligence Team ([email protected]) October 2013
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A short report of the activities around Business Intelligence at Sibos in Dubai (September 2013). It includes testimonials by business practitioners.
Transcript of SWIFT Business Intelligence at SIBOS in Dubai - Wrap-up report
Business Intelligence at Sibos Dubai
The sky is the limit: get more
from the Watch portfolio!
Business Intelligence Team ([email protected])
October 2013
BI @ Sibos Dubai – Wrap-up report October 2013 2
Key headlines
• Act faster, perform better! – Testimonials from practitioners using
SWIFT BI solutions
• Global payment dynamics over the next decade – A BCG/SWIFT
report
• Manage your risk through insights leveraging SWIFT data flows
• More data and insights at your fingertips!
• Additional BI activities in Dubai
BI @ Sibos Dubai – Wrap-up report October 2013 3
Act faster, perform better! – Testimonials from
practitioners using SWIFT BI solutions
Michael Bellacosa
Bank of New York Mellon
Madhavan Ramaswamy
Standard Chartered
Murali Subramanian
ADCB
The session in a nutshell:
The panellists highlighted how valuable SWIFT
Business Intelligence products and services are
to manage their business, allowing them to act
faster and perform better.
Source: http://www.swift.com/resources/documents/SWIFT_at_Sibos_Monday_2013.pdf
BI @ Sibos Dubai – Wrap-up report October 2013 4
Act faster, perform better! Testimonials from
practitioners using SWIFT BI solutions
Typical business insights using Value Analyser and Watch Insights:
• High level market assessment
• Regional perspective
• Country flows
• Relationship volume activity
• Value / risk activity
• Global, regional, country, activity share – are we growing?
• Trends – hot markets
• Opportunities – flow tracking
• Validate assumptions
• Confirm business terms with partners
How to use additional granularity on data available today through SWIFT BI services:
A.The charging methodology :
Understand market behaviour on charging of fees;
How your own distribution of such transactions
matches with the market trends;
Identifying new opportunities to optimize earnings while
managing the expectations of various parties involved.
B.End beneficiary countries :
Knowing the actual flows of transactions in different currencies;
Identifying corridors of opportunities to develop unique solutions
which will meet the needs of the parties involved;
Using the knowledge of fee practices in different destination
countries to optimize fee income.
• When we signed up to SWIFT Watch, we decided to go it ourselves. This took some time, and perhaps a
consultancy service would have sped up the process
• A great help for the business, especially FI relationship management and product management, and operations
• A great tool to keep counterparts ‘honest’, i.e. provide visibility on flows and value created
• SWIFT BI tools have also helped influence our strategy in respect of country and bank risk
Why to use Volume and Value Analysers - Key benefits for a regional bank
BI @ Sibos Dubai – Wrap-up report October 2013 5
Global payment dynamics of the next decade
A BCG/SWIFT report
Stephane Dab
Pedro Rapallo
The session in a nutshell:
BCG disclosed at Sibos its first
insights coming from the latest
update of their Global Payments
model. SWIFT helped BCG
calibrate the model for cross-
border flows, for the benefit of the
whole SWIFT BI community.
The presentation by The Boston Consulting Group (BCG), “Global Payments Dynamics Over the Next Decade,” put into
perspective the size and importance of transaction-banking businesses. The presentation was based on the recently-
published BCG report “Getting Business Models and Execution Right: Global Payments 2013”.
Banks handled $377 trillion in noncash transactions in 2012 and generated $524 billion in revenues. Transaction-related
fees drove 57 percent of these revenues, with account-related spread and maintenance fees driving the remainder.
Overall, transaction-banking revenues made up about a quarter of total global-banking revenues.
By 2022, transaction-banking
revenues will reach an estimated
$1.1 trillion, a compound annual
growth rate (CAGR) of 8 percent.
But the revenue growth will not be
evenly spread across regions. A key
finding of BCG's analysis is that the
payments world is increasingly
growing at two speeds. There are
widening gaps between how
payments businesses are evolving in
mature economies and in rapidly
developing economies (RDEs).
This disparity was well evident in
2012. While mature markets made
up 71 percent of payment volumes,
they realized just 63 percent of
payment revenues. Between 2012
and 2022, revenue growth in RDEs
will be more than double that of
mature markets, a projected CAGR of 12 percent (compared to 5 percent). In mature markets, account revenues will be
the biggest drivers of growth—primarily the result of the steepening yield curve. The growth of transaction revenues is
being heavily dampened by the impact of regulation on prices and, to a lesser degree, by heightened competition. By
contrast, RDEs are benefiting from strong macroeconomic growth as well as rising financial inclusion and the migration
from cash to non-cash payments, all of which translates into double-digit growth in payment volumes. Moreover, RDEs
are experiencing stronger growth in cross-border trade, which drives the attractive cross-border payment business.
BI @ Sibos Dubai – Wrap-up report October 2013 6
Global payment dynamics of the next decade
A BCG/SWIFT report
The implications of the two-speed world for banks are profound, and the message for
mature markets is loud and clear.
“The competitive battleground will be in the front-office,” said Stefan Dab, global leader of
BCG’s transaction-banking segment. “To gain market share, banks must excel across the
board, from product development and marketing to sales and service. In retail payments,
which have been and will continue to be battered by price regulation, banks must drive
stronger links across their payments businesses and other retail banking services and
create new value propositions and pricing schemes around bundled products.”
In RDEs, by contrast, green field opportunities remain bountiful. To seize these new
opportunities, banks need a highly analytical approach to migrate customers to electronic
payment instruments, understanding both the benefits of higher account balances as well
as the incentives required to change payment behaviors.
“Champions are highly disciplined at aligning and executing all elements of the sales
cycle, cutting across traditional silos,” said Pedro Rapallo, global leader of wholesale
transaction banking at BCG. “We have found that they excel across product development,
target setting, origination, sales execution, deposit monitoring, and liquidity incentives.”
In particular, BCG sees transaction-banking champions differentiating themselves in target
setting. “The most advanced transaction banks use powerful analytics to tailor their value
propositions in products, pricing, and servicing to individual client needs, taking into
consideration the client’s full potential for bank products beyond cash management,” said
Rapallo. “Underpinning their success is their ability to translate the results of sophisticated
wallet-sizing models into simple metrics that are easy for the sales force to understand
and use. They allocate resources, set targets, and adapt the service model in line with
sales potential. This process often results in specific commercial strategies based on
industry verticals such as retailers and traders, and on the client's value.”
Beyond the sales cycle, BCG also addressed pricing opportunities. “While challenging to
execute, pricing initiatives can bring excellent results in fee-based products in which the
long-term relationship is key,” said Dab. “Pricing process involves regular re-pricing cycles
with existing clients to gain incremental revenue with direct bottom-line impact.”
BCG said that by having a regimented process, banks can avoid seven common
pricing mistakes: adopting marginal-cost pricing, not de-averaging, not re-pricing
when volume and/or the number of products goes down, omitting charges,
charging insufficiently for quasi-customization, letting prices become outdated, and
fostering adverse incentives.
While the journey to becoming a transaction-banking champion is not an easy one,
it is certainly one worth making. With more than $1 trillion in revenue at stake by
2022, banks must adapt their business models to the changing dynamics of the
payments industry. “The name of the game across markets and businesses will be
customer centricity,” said Dab. “Not simply as a marketing rallying cry, but as a
guiding principal embedded in every aspect of a bank’s business model.”
For details on BCG's analysis and perspectives, please download their report,
Getting Business Models and Execution Right: Global Payments 2013,
https://www.bcgperspectives.com/financial_services
BI @ Sibos Dubai – Wrap-up report October 2013 7
Manage your risk through insights leveraging
SWIFT data flows
Phil Rolfe
Royal Bank of Scotland
Victor Matafonov
Standard Chartered
The session in a nutshell:
SWIFT launches a new offering: Business
Intelligence for Compliance allowing
customer to manage better their risk
exposure through the identification of
unusual traffic patterns
BI @ Sibos Dubai – Wrap-up report October 2013 8
More data and insights at your fingertips!
Solutions ready for demo with your own data
The migration to the new platform is in
progress, with a « go-live » in Q4 2013, following
a successful pilot phase over summer.
More granular data to derive business insights is
available through BI services. The incorporation
into Watch products is planned for Q4 2014.
The Watch portfolio includes analysers (data), dynamic
dashboards (insights), BI consulting services and
SWIFT Economics (SWIFT Index, RMB tracker).
BI @ Sibos Dubai – Wrap-up report October 2013 9
Additional BI activities in Dubai
Update at Chairpersons
meeting
More than 30 customers
benefited from personalised
demo with their own data…
still available today through
webex!
Source: http://www.swift.com/resources/documents/SWIFT_at_Sibos_Pre_issue_2013.pdf
Testimonial related
to new BI services
BI @ Sibos Dubai – Wrap-up report October 2013 10
Take the BI pulse!
http://www.swift.com/solutions/banks/
www.sibos.com, see you in Boston 2014!
#SWIFTBI BI Transaction Banking
Contact us now and follow us at any time!
Regional commercial managers
• Americas [email protected]
• Asia-Pacific [email protected]
• EMEA [email protected]
Marketing
• Head of BI [email protected]
• Generic [email protected]
• Communication [email protected]
Topical experts
• RMB [email protected]
• Platform migration [email protected]
• SWIFT Index [email protected]
